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iPod market share “may be overblown”

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By Dennis Lloyd

Publisher, iLounge
Published: Thursday, May 27, 2004
News Categories: Apple

MacMinute reports Apple’s iPod is a hit, but analysts’ belief that it commands 25 percent of the global market may be overblown, Alex Salkever writes in his latest “Byte of the Apple” column for Business Week Online. He says this is because “very little good data exists on international sales of consumer electronics.” “According to one of those chipmakers and to industry analysts, worldwide shipments of digital-music-player chips hit about 15 million last year,” Salkever writes. “An April, 2004, report from investment bank CIBC on this market estimated global sales of flash and hard-drive music players at 17 million. If that’s true, then the 1.5 million iPods sold in 2003 gives Apple 8 percent to 10 percent of the global market.”

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Comments

1

In LA you see nothing but iPods, but I can’t speak for outside of LA.

$250-500 for an iPod is a lot and Apple’s main competition is gonna come from price.

The other day at Costco I saw the RCA MP3 player flying out the door.

Posted by Big Sid on May 27, 2004 at 8:01 AM (PDT)

2

The faital flaw is that they said 1.5 million iPods in 2003. This isn’t including the past years and up to now. Even then, I think the 25 percet is totally perfect ammount.

Posted by JosephM on May 27, 2004 at 8:58 AM (PDT)

3

One out of every 10 big music players is an iPod? I’ll take that any day!

Posted by Sam on May 27, 2004 at 10:01 AM (PDT)

4

25% internationally does seem a little too big. Especially with the other players out there offering players cheaper (albeit with less space)..

Posted by Andrew on May 27, 2004 at 11:35 AM (PDT)

5

Market share != unit share. iPods are significantly more expensive than many of their competitors, so their market share can be expected to be significantly greater than their unit share.

Posted by MS on May 27, 2004 at 12:24 PM (PDT)

6

could you elaborate some more on the exact differences between “market share” and “unit share”?

Posted by mark on May 27, 2004 at 12:30 PM (PDT)

7

hang on…. he says “no good data” exists, then starts springing figures? I don’t know about others hear, but it sounds to me like a slight contradiction

Posted by Nathan on May 27, 2004 at 1:59 PM (PDT)

8

Market share can be measured as the slice of dollar retail volume within a segment that is accounted for by iPods.

Unit share is a count of the number of units sold within that market segment.

The iPod “punches above its weight” by market share dollar volume, but in terms of units sold it’s much lower.

In terms of mind share, of cours,e the iPod is way ahead of probably all other music player brands.

Posted by dollar volume on May 27, 2004 at 4:01 PM (PDT)

9

It must be a lie

:rolleyes:

Posted by Adam on May 27, 2004 at 10:32 PM (PDT)

10

I’m in Holland, and a lot of people would like to get an ipod here. The problem is it’s a very expensive toy. And it’s hard to get one. It’s not for sale in the stores you’d go to for audioplayers.

If Apple wants to dominate in Holland like they do in California the pricing should be better. The 40Gb Ipod in the dutch webstore is 549. In the US webstore it’s 418,73. That’s over 30% more!.

The same for the rumored pricing for the iTunes Music store, $0,99 (0,83) vs 1,25. 50% more!!.

549 buys me a portable DVD player with 19:6 lcd screen that plays 2 movies on 1 battery. It also plays anything else I throw at it (mp3, pictures, aac, etc) from disk.

The same thing is happening now what happend with macintosch: Everyone want’s it, but most of them will buy the cheaper rip-off. Apple is a trendsetter, and wil never ever rule anything once competition starts.

Posted by robsky on May 27, 2004 at 11:33 PM (PDT)

11

“very little good data exists,” therefore the numbers must be worse than analysts (NOT Apple) estimate. Or, they could be better.

Sounds like a big “maybe.”

Posted by Nagromme on May 27, 2004 at 11:36 PM (PDT)

12

Let me share with you the opinions of a colleague in IT currently based in Shanghai, China (where many iPods are manufactured), when I asked about Apple’s statements concerning their market share:

——————————————————

Ya they are smoking weed, look around there is no way in hell they have 25% of worldwide market.  Maybe that have 40% in the Marina and Palo Alto but 1% in China is making up for that and then some.


Analyst play pr games, get bought off.  A Hong Kong analyst took me out with one of the owners of XXXXXXX this week.  The XXXXXXX guy tried to buy both of us at a KTV and buy us an orgy.  The Analyst took him up on it and took home two chics on Mr XXXXXXX, now you know the new [MARKET SEGMENT DELETED] report will have XXXXXXX looking a bit better than before.  I think apple must have the largest prostitute fund of all tech companies for all the PR bull they get.

At best maybe the last quarter of 2002 and first of 2003 they had that kind of market just in the us.  Go look in best buy, they have 100 units of various kinds on the shelves and 3 or 4 ipods locked up.

The CIBC report look more like it.

Posted by smoking weed on May 28, 2004 at 4:19 PM (PDT)

13

This is the funniest story I have read in a long time!!!!!!

How do I get Apple to spend some of their “prostitute fund” on me?

Posted by HILARIOUS on May 29, 2004 at 7:40 AM (PDT)

14

Heh. Looks like the iPod market share isn’t the only thing getting over “blown” these days.

Posted by Overblown on May 30, 2004 at 7:05 AM (PDT)

15

I’ve heard that Apple’s prostitute fund is equal opportunity and funds both male and female, gay and straight, hookers.

Apple has always been ahead of the curve in marketing. This kind of promotion fits in well with the iPod Mini’s colors.

Posted by equal opportunitie on May 31, 2004 at 12:04 PM (PDT)

16

If Microsoft is going to bring out a $50 “iPod Killer” does that mean that the MS hooker fund is not well-heeled “escorts” but really, really cheap street walkers?

Posted by Microsoft on June 1, 2004 at 8:58 AM (PDT)

17

MS’s hookers get hooked up with you for free… Then charge extra for each sexual act.

Posted by gropo in NYC on July 10, 2004 at 8:23 PM (PDT)

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